Builders optimistic as new housing permits keep up the pace

Updated 6:58 pm, Wednesday, September 30, 2015

This photo, taken in August, shows construction underway on an apartment building at 545 Bedford Street in Stamford. Even amid an ongoing residential building boom across Fairfield County, permits for future construction rose 50 percent in the first seven months of the year.

This photo, taken in August, shows construction underway on an apartment building at 545 Bedford Street in Stamford. Even amid an ongoing residential building boom across Fairfield County, permits for future

Sunny skies for much of the summer of 2015 helped builders stay on track for their project timelines, including in mid-September at the planned 262-unit Valley Glen development at 740 Bridgeport Avenue in Shelton, Conn.

Sunny skies for much of the summer of 2015 helped builders stay on track for their project timelines, including in mid-September at the planned 262-unit Valley Glen development at 740 Bridgeport Avenue in

Habitat for Humanity volunteers from the Shelton, Conn. office of Prudential work in mid-September 2015 on a new home under construction in Bridgeport. Between January and July, permits were up 50 percent from a year ago for new residential housing in Fairfield County. less

Habitat for Humanity volunteers from the Shelton, Conn. office of Prudential work in mid-September 2015 on a new home under construction in Bridgeport. Between January and July, permits were up 50 percent from ... more

A worker at the Laurel Hill Apartments in Brookfield in August. Fairfield County residential construction permits spiked 50 percent in the first seven months of the year, with builder confidence still high heading into the autumn.

A worker at the Laurel Hill Apartments in Brookfield in August. Fairfield County residential construction permits spiked 50 percent in the first seven months of the year, with builder confidence still high

Construction on a home underway in late July 2015 on Havemeyer Place in Greenwich, Conn. Local builders have benefited from a strong stock market in the first half that helped embolden homeowners to undertake new construction, additions and major renovations. less

Construction on a home underway in late July 2015 on Havemeyer Place in Greenwich, Conn. Local builders have benefited from a strong stock market in the first half that helped embolden homeowners to undertake ... more

The Metro Green Apartments on Henry Street in Stamford. More than $3 million paid by the developer of the apartments going up on Morgan Street into an affordable housing fund will go toward the next phase of the Metro Green project. less

The Metro Green Apartments on Henry Street in Stamford. More than $3 million paid by the developer of the apartments going up on Morgan Street into an affordable housing fund will go toward the next phase of ... more

A rendering of the Metro Green Apartments on Henry Street. More than $3 million paid by the developer of luxury apartments going up on Morgan Street will go into an affordable housing fund and be put toward Metro Green’s next phase. less

A rendering of the Metro Green Apartments on Henry Street. More than $3 million paid by the developer of luxury apartments going up on Morgan Street will go into an affordable housing fund and be put toward ... more

Photo: Contributed Photo / Contributed Photo

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Harbor Point developer Building and Land Technology's newest proposal is for a 16-story residential tower bordering Commons Park.

Harbor Point developer Building and Land Technology's newest proposal is for a 16-story residential tower bordering Commons Park.

Photo: Contributed / Contributed

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Harbor Point developer Building and Land Technology's newest proposal is for a 16-story residential tower bordering Commons Park.

Harbor Point developer Building and Land Technology's newest proposal is for a 16-story residential tower bordering Commons Park.

This rendering shows the front of Meadow Farm at 495 North St. in Greenwich. The property is Bespoke Real Estate’s first listing in Greenwich.

This rendering shows the front of Meadow Farm at 495 North St. in Greenwich. The property is Bespoke Real Estate’s first listing in Greenwich.

Photo: Contributed Photos / Bespoke Realty

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This rendering shows the front of Meadow Farm at 495 North Street in Greenwich. The property is Bespoke Real Estate’s first listing in Greenwich.

This rendering shows the front of Meadow Farm at 495 North Street in Greenwich. The property is Bespoke Real Estate’s first listing in Greenwich.

Photo: Contributed Photo / Bespoke Realty

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A preliminary rendering of the proposed municipal pool at Byram Park in Greenwich, Conn. More formalized designs and cost estimates are expected to be in within the next 60 days.

A preliminary rendering of the proposed municipal pool at Byram Park in Greenwich, Conn. More formalized designs and cost estimates are expected to be in within the next 60 days.

Photo: Contributed Photo / Contributed /Junior League Of Greenwich

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This rendering from Antinozzi Associates shows what a new building to be constructed between Fairfield Avenue and Elm Street in Bridgeport will look like when completed. Fairfield Avenue is at right. The project will include a walkway between the two streets, with businesses fronting on the passage.

This rendering from Antinozzi Associates shows what a new building to be constructed between Fairfield Avenue and Elm Street in Bridgeport will look like when completed. Fairfield Avenue is at right. The

A rendering from Antinozzi Associates shows from the perspective of Fairfield Avenue what a new downtown Bridgeport building from the Kuchma Corp. will look like.

A rendering from Antinozzi Associates shows from the perspective of Fairfield Avenue what a new downtown Bridgeport building from the Kuchma Corp. will look like.

Photo: Contributed Photo

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A rendering of a home in the Shelton Cove development that is slated to open in July 2015.

A rendering of a home in the Shelton Cove development that is slated to open in July 2015.

Photo: Contributed Photo

Builders optimistic as new housing permits keep up the pace

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On a wet Wednesday exiting September, Peter Gaboriault could take a moment to reflect on the summer’s construction activity, with his Westport firm Bear Paw Builders able to work full bore throughout the season under consistently clear skies.

If a few new reports are any indicator, builders can expect a good forecast for the remainder of the year and possibly setting up for more of the same in 2016.

Sales of newly constructed homes in the Northeast spiked in August, according to estimates released last week by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Across the region, some 36,000 new homes were sold, up 24 percent from July as well as August 2014. Nationally, 552,000 freshly built homes sold in August, up 5.7 percent from a year ago, with no other region of the country seeing a double-digit percentage increase.

In Fairfield County, builders received permits between January and July to construct 1,530 residential units in Fairfield County, both single-family homes and units contained in larger multifamily developments, according to the Connecticut Department of Economic and Community Development (DECD). That was up from about 1,000 permits a year ago, although that figure excludes a handful of smaller towns for which DECD did not post 2014 data, which may have pushed last year’s numbers up by as many as 100 permits or more.

In the market of 2015, it takes about six weeks for construction to get underway on a single-family home upon issuance of a building permit, according to Gaboriault, who in addition to running Bear Paw Builders with Steve Pearsall also is president of the Home Builders and Remodelers Association of Fairfield County. With the some 630 permits authorized in July being the second highest of any month after May, when 740 took effect, the construction industry promises to stay busy for as long as the winter weather is held at bay.

“(Builders) are feeling better than two years ago,” Gaboriault said. “If you drive around, you see projects all over the place.”

More Information

New housing permits in Fairfield County

Select municipalities, January-July 2015

Municipality

Units

Danbury

535

Stamford

320

Bridgeport

104

Shelton

98

Norwalk

81

Fairfield

61

Greenwich

58

Westport

48

Source: Connecticut DECD

For some builders, projects got off to a slow start due to two months of snowy, frigid weather to start the year. Since the ground started to clear in late March and early April, however, construction crews have seen mostly balmy weather, which Gaboriault noted can make a difference in staying on track during excavation, framing, siding and roofing work.

Also helping the industry has been a stock market boom that has emboldened wealthier people to consider building their own homes versus buying existing ones, or purchasing new houses built on spec.

“You start at the top of the food chain which is Greenwich and it goes ... along the coast (where) it’s been strongest, as well as New Canaan,” Gaboriault said. “We’re affected by Wall Street —if Wall Street is going … to struggle, that’s not a good thing for us.”

Slight pessimism

If confidence in the stock market has shown shakiness of late, builder confidence nationally is at its highest level since October 2005, according to a monthly poll released in mid-September by the National Association of Homebuilders and Wells Fargo. Builders in the Northeast are somewhat more pessimistic, however, expressing peak confidence in July that has since dropped slightly.

There were 216,000 new homes on the market entering September, about 11,000 more than in August 2014 and up from 141,000 two years prior. HUD and the Census Bureau have yet to calculate the number of new homes for sale in the Northeast, with that figure at 18,000 units in August 2014.

“As local job markets continue to expand, the pool of homebuyers will only increase,” Lawrence Yun, chief economist for the National Association of Homebuilders, said in a September statement addressing the national picture. “It’s crucial for builders to begin shifting their focus from apartments to the purchase market and make up for lost time. If not, severe housing shortages and faster price appreciation will erode affordability and remain a burden for buyers trying to reach the market.”